Correlation Between Ascelia Pharma and Saniona AB
Can any of the company-specific risk be diversified away by investing in both Ascelia Pharma and Saniona AB at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ascelia Pharma and Saniona AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascelia Pharma AB and Saniona AB, you can compare the effects of market volatilities on Ascelia Pharma and Saniona AB and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ascelia Pharma with a short position of Saniona AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascelia Pharma and Saniona AB.
Diversification Opportunities for Ascelia Pharma and Saniona AB
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ascelia and Saniona is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Ascelia Pharma AB and Saniona AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saniona AB and Ascelia Pharma is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ascelia Pharma AB are associated (or correlated) with Saniona AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saniona AB has no effect on the direction of Ascelia Pharma i.e., Ascelia Pharma and Saniona AB go up and down completely randomly.
Pair Corralation between Ascelia Pharma and Saniona AB
Assuming the 90 days trading horizon Ascelia Pharma AB is expected to generate 0.88 times more return on investment than Saniona AB. However, Ascelia Pharma AB is 1.13 times less risky than Saniona AB. It trades about 0.01 of its potential returns per unit of risk. Saniona AB is currently generating about -0.16 per unit of risk. If you would invest 292.00 in Ascelia Pharma AB on October 30, 2024 and sell it today you would lose (2.00) from holding Ascelia Pharma AB or give up 0.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Ascelia Pharma AB vs. Saniona AB
Performance |
| Timeline |
| Ascelia Pharma AB |
| Saniona AB |
Ascelia Pharma and Saniona AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascelia Pharma and Saniona AB
The main advantage of trading using opposite Ascelia Pharma and Saniona AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascelia Pharma position performs unexpectedly, Saniona AB can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Saniona AB will offset losses from the drop in Saniona AB's long position.| Ascelia Pharma vs. Hansa Biopharma AB | Ascelia Pharma vs. Cantargia AB | Ascelia Pharma vs. Saniona AB | Ascelia Pharma vs. BioArctic AB |
| Saniona AB vs. Vitrolife AB | Saniona AB vs. Biotage AB | Saniona AB vs. Sectra AB | Saniona AB vs. BioGaia AB |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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